Securing Social Security: The 2024 Primaries and Beyond
By Kevin Crain, GCOA Advisory Council Member
Kudos to Kristen Welker last night in the Republican Presidential debate for asking about Social Security solvency and pressing the candidates for specific reforms. Social Security reform should be a leading voting issue in the 2024 elections. Social Security impacts over 70 million citizens, in an age segment that historically is quite engaged in elections. We must have serious conversations about the long-term health and sustainability of this program.
A sobering article in today’s Wall Street Journal highlights the importance of taking action now for solvency:
- The population is projected to decline by the year 2100.
2) The U.S. birthrate has declined 19% in past 15 years.
3) Life expectancy in America is projected to increase, from age 80 today to 88 by 2100.
4) The age 25–54 employee segment is projected to decline by the 2040s
The factors present a terrible equation for solvency: fewer younger workers + declines in peak earning age segment = increasing strain on payors. Add in longer lifespans, meaning benefit payments are paid for longer, and the challenge becomes even clearer.
The aging megatrend and the current projections of insolvency or reduced benefits by 2034 puts Social Security reform as a leading 2024 election issue. It should be one where voters force candidates to outline specific reforms, “It will be protected” is insufficient as an answer. It will take action to secure the system, voters ought to know who is willing to act.
